eChannel 16 September 2001

It was announced last month that Boo.com, one of the worst dot-com failures, may become the subject of a blockbuster Hollywood movie. Boo.com, an online sports clothing retailer, managed to blow $100 million of funding in one of the worst excesses seen n any company of the dot-com era.

Founded by an ex-Vogue model and a former poetry critic, Boo spent over $30 million on a series of TV adverts, and an untold amount on parties, luxury offices in 18 cities worldwide, flights on Concorde and a private army of 40 Nepalese Gurkha body guards to protect the high profile executives from kidnapping. The chief financial officer was so horrified by the spending behaviour of the founders that he bailed out after just two months. The company finally folded, costing 300 jobs. When the liquidators finally managed to sell off Boo’s technology, they made just $170,000.

Now the founders have written a book about their experiences, and reports are claiming that the film rights alone could make them a six-figure sum-already Ed Norton and Cameron Diaz are tipped to star. Not that writing a book has been the sole source of income for the hapless dot-com entrepreneurs-they have been busy with after-dinner speaking agreements, telling investment bankers all about the pitfalls of investing in a dot-com.

The Boo story is not the only film about dot-coms in the pipeline however-and there are several books on the subject already. Given all the negative publicity, it is not surprising that there are warnings that the Middle East might be shying away from e-business. Ayman Safadi, senior manager with Accenture warned companies recently that they needed to learn from the warnings from the west. He says that there are too many people taking ‘e-fatigue’ in the US and Europe as a sign that e-business does not work. Companies have invested in the wrong technology, or not deployed what they have properly, and then abandoned their systems. Even ITP’s own Arabian Business.com magazine has quietly dropped its dot-com tag.

So is e-business dead in the Middle East? Safadi points out that when it works, companies can save billions by changing the way they address their customers, by using the Internet to improve communications. Maybe the most telling sign comes from Seven Seas Computers of Dubai. The company has restructured its high-volume, low-margin business, to deploy e-solutions to streamline its low-end PC business. The company has had a website, complete with payment gateway, for two years, says general manager Mark Richards, only now it will be putting much greater emphasis on it.

Three years ago, the mantra of ‘e-business or out of business’ was dominant. Six months ago, e-business [i]was[/i] out of business. Are we now at a stage where regardless of enthusiasm for e-business, business necessity is back in the driving seat?

||**||News|~||~||~|Emirates Computers helps HCT get back to school

Emirates Computers has completed work on a new fibre optic network for the Sharjah Women’s College. The network, which will serve over 140 staff and student users, was completed in record time ahead of the start of the new academic year. Emirates staff of twenty engineers and technicians completed the project in just three weeks, to be ready in time for the new college term.

The network will link 1600 points across four buildings on the Sharjah campus. through use of fibre optic cabling and active Cisco 006 Catalyst products, the system will be able to provide up to 250MHz in bandwidth, which will enable the college to deploy solutions such as video conferencing and multimedia information applications.

The fibre optic cable also ensures that the network will be suitable for future high bandwidth applications. The network also has a large number of patch panels built into the network between hub and periphery, to allow for greater flexibility. These combinations have allowed Emirates Computers to provide a twenty year warranty for the network.

“Emirates Computers has done a wonderful job to complete the network cabling of all the buildings before the reopening of the college. The real challenge was the shortage of time and only a company like Emirates Computers could have done work of such high quality in the limited time,” said Dr Farid Ohan, director of Sharjah Women’s College.

“This cabling has enabled us to accommodate all our new students so that they have access to the network. It also facilitates our teaching programs because the classrooms can be used as computer labs as well.”

The LAN is part of an ongoing project with the UAE Higher Colleges of Technology (HCT), that operates the Sharjah Women’s College. So far Emirates Computers has provided networking solutions to most of the HCT in the UAE. “Emirates Computers is proud of its long and rewarding association with HCT, which has always been a far sighted and discerning institution in adapting cutting edge technology and robust IT solutions. We are delighted that we have provided the LAN for most of the branches of HCT in the UAE,” said Haytham Kamel, vice president and general manager, Dubai and Northern Emirates at Emirates Computers.

Gateway retreat is confirmed

Gateway has confirmed today that it is to pull out of Southern Eastern Europe, the Middle East and Africa. The move had been expected by industry observers since the company’s decision to close its manufacturing base in Ireland and pull out of Western Europe. The company will now focus solely on US operations.

The decision was announced at the same time as the company revealed that it had completed negotiations with union representatives in the UK and Ireland agreeing redundancies. Operations will be wrapped up by the end of this year.

Martin Coles, Gateway’s senior vice-president, said: “We’re accelerating our strategy to deliver personalised technology solutions for our target customers, so we’ve had to make market-by-market decisions about where we can achieve these goals most effectively.”

The total loss of jobs will amount to some 2400 wordwide, most of which will be in Western Europe. Gateway also ceased operations in Asia Pacfic last month. Coles added: “We empathise with employee’s concerns, but at this time we must make such difficult changes to ensure future growth and profitability for the entire company.”

Sophie Michaelides, PR manager for Gateway SEEMEA, was anxious to point out the departure did not mean the abandonment of customers in the Middle East. She said: “We will fulfill the orders we have so far although we take no new orders from today. We will definitely continue to provide service and product support as long as we need to.”

But some partners were still surprised that there was to be a total withdrawal from the Middle East market. Yazd Goiporia, of Computer Direct Access, the online reseller based in Dubai, said: “We didn’t think they would pull out of this region, we thought it would just be Asia.” Although Goiporia only started selling Gateway this year, and as such is not over-dependent on their sales, he added: “It is not an overwhelming worry – but definitely a concern.”

Now that Gateway has restricted itself to the US market the company hopes to make substantial savings from next year. However in a report from ABN AMRO investment bank published last Wednesday, analysts questioned the strategy. Robert Cihra, author of the report said: “It seems Gateway has now formally marginalised its position in the overall PC market. We believe that Gateway will now be solely dependent on the world’s most mature PC market, the USA, and no longer have a chance to benefit from lower penetration rates overseas.”

Tech Data aims to boost profitability for regional resellers

Tech Data, has unveiled its “TD Anywhere Search” web commerce model that will provide immediate personalised product listings and prices to resellers across the region. The company hopes that the system will reduce the channel’s expenses dramatically as communication costs are lowered.

“Our experience has shown us that communication costs, such as telephones and faxes are a major burden on resellers and eat up their profits. By putting personalised prices on the web that take into consideration all variables: shipping costs, custom duties etc. for each reseller in his own country, we save him the time and money spent on product and pricing inquiries by telephone or fax,” says Eliot Shepherd, marketing director, Tech Data.

“In addition to that, this brings a wealth of information to the channel: you could read about a new product on any web site, select some descriptive text or a part number on that site and immediately search Tech Data's online catalogue for it,” he adds.

“TD Anywhere Search” is part of the company’s plan to provide a comprehensive web commerce platform for resellers, as Tech Data already conducts 100% of its own procurement from vendors electronically — through either the web, XML and EDI — due to cost considerations.

The company will demonstrate the system at the ITP organised Reseller Forum at Dubai’s Gitex trade show. “All our business strategies revolve around one idea: strengthening the channel’s business. That means providing the best products in the most cost effective and rapid way, in addition to ensuring full logistical support for resellers and finding new ways to develop their profitability,” says Steve Lockie, managing director of Tech Data.

“We are looking forward to the reseller forum, which will give us the opportunity to discuss this latest tactic with our resellers as well as talk about their business and the latest developments in their markets,” he adds.

Al-Faris appoints Saudi reseller

Somac-IT has been appointed to act as reseller for Optika and CIC solutions in Saudi Arabia. Al-Faris IT Solutions Co. is the distributor of these technologies and the relationship with Somac-IT should provide greater penetration for the vendors.

Both Optika and CIC make systems that allow online transactions to be safer and more efficient. The technologies allow real time viewing, discussion and sharing of documents to allow e-business transactions to be conducted with greater security.

Yasser Al-Gamadi, Director of SAP Services and e-Business Solutions at Somac-IT said: “This reseller alliance will greatly increase our offerings to prospective clients and will enable us to capitalise on the e-business potential in Saudi Arabia. Optika and CIC solutions from Al-Faris align very well with our business.”

Haitham Al-Faris, CEO of Al-Faris IT Co., said: “We will fully support Somac-IT with our experience and skills to deliver solutions to prospective clients. Somac-IT is the right partner to implement our solutions."

Symbol targeting Middle East growth

Symbol Technologies is looking to take a more aggressive market approach to the Middle East by enhancing its presence and product offerings in the region. The vendor is looking to develop its solutions for the vertical markets particularly the petrochemical sector.

“A number of vendors are coming to market with handheld computers, and many more with wireless network solutions. As pure technology devices, these offerings are often impressive, but typically do not in themselves solve a particular business problem,” said Mike Allen, Symbol’s senior director for channels and alliances. ”Symbol’s goal is to bring together three core technology competencies, barcoding, mobile computing and wireless, and put them together in a way that will quickly and easily make workers’ jobs easier, increase management’s ability to monitor and control the business.”

Symbol predicts the Middle East is a prime market for rapid growth, with expectations of 60-70% growth year-on-year over the next three years, according to Sunil Chadha, regional manager for Symbol.

“Many manufacturers in this region are only just starting to adopt barcoding – which is key if they want to start exporting to Europe and the US. Companies here are also discovering the value in bringing their information systems directly to the shop, warehouse or factory floor … where workers can solve problems or look up information on the spot through wireless handhelds, rather than having to fill in paperwork or run backwards and forwards from computer terminals.”

Cisco Systems has launched the Fast Start programme to drive new Gigabit Ethernet over copper technology into organisations that need the bandwidth, but could not afford previous generations of Gigabit Ethernet technology. The Fast Start programme is designed to communicate the advantages of Cisco's new Gigabit over Copper technology to resellers and partners, helping them identify customers that can most benefit from this technology..Resellers and partners enrolling in the programme will receive sales and marketing support, including collateral, and sales kits, and CASH incentives.

Tech Data steps forward to offer Middle East resellers the best priced notebook - Hewlett Packard Xe3 Omnibooks. The success came after the sales of these notebooks flying in KSA, Kuwait and other territories.This special offer from Tech Data is clearly our strategy to close bigger sales during the summer when people are on the move.

For more information on the special offers please log on to our website : http://www.techdata.co.ae (click on to resellers special offers or other exciting links/Exciting offer on HP Xe3 Omnibooks) or call our Sales desk at 971-4-3346952.

For Peace of Mind Install Intel Pro/100S Adapters call Tech Data Now on 04 334 6952 For A Great Deal on Intel

Sign up to Intel’s Focus Integration Program for Volume discounts and More

Special offer price applicable until end Sept 2001 or while stocks last, Prices : Ex-JAFZ

Intel Network Interface Adapters pricing dealIntel is offering IPIs a special pricing deal on Network Interface Adapters. This preferential pricing allows IPIs to buy a 20-pack at the same card unit cost as an 80-pack.

November 4-8: Oracle Designer 6i Track, First Class, at Regional IT Institute, Giza. For more information, see http://www.riti.org, or contact Mrs Alyaa Awad on 20 2 572 0995, or email: alyaa.awad@riti.org

November 11-13: Oracle Designer 6i Track, System Modelling, at Regional IT Institute, Giza. For more information, see http://www.riti.org, or contact Mrs Alyaa Awad on 20 2 572 0995, or email: alyaa.awad@riti.org

||**||Recruitment|~||~||~|Are you looking to hire experienced channel people to expand your business? Why not advertise your positions to over 3,000 registered members of the Middle East reseller channel for FREE every week in eCRN?

If so please send a message to Recruitment today and we will add your job listing to the next edition of eCRN. And please don't forget to notify us once the vacancy is filled.

EMPA Middle East FZCO: Regional distributor of Intel and Quantum

Wanted: Sales Engineers with channel experience & knowledge of the North Africa and/or Middle East region.

Wanted: Young, educated people willing to work in a fast moving company.

The following positions are open to appropriate candidates:

Retail Sales SpecialistA sound knowledge of the retail business would be appreciated.

The candidate should have very good communication skills and a good command of English.

His job is to create his own channel while passing up leads, giving time and support to his customers through daily visits or/and daily telephone contacts.

The position is based in Saudi Arabia.

The company will provide training on products.

Retail Business DeveloperThe position needs a previous experience in the retail market, ideally in IT, distribution or both.

The candidate should be holding a degree in Commerce or IT from a valuable university.

The candidate should have a very good command of English and should position himself as the Retail Office of the company.

Daily contacts with both customers and vendors, accuracy in reporting and development of marketing activities around his brands are required.

The Retail Business Developer will have to break into the market with major brands and to manage his Sales Specialist and his channel.

The position is based in Riyadh, Saudi Arabia with regular visits paid to customers/users Kingdom wide.

Networking Sales Specialist

A sound experience in selling networking products is needed here.

Understanding the end-user market is a must as it drives the sales to our second tier partners.

The candidate should have very good communication skills and a good command of English.

His job is to create his own channel while passing up leads, giving time and support to his customers through daily visits or/and daily telephone contacts.

The position is based in Saudi Arabia.

The company will provide training on products.

Telesales (two to three positions available)

We would like to invite here all people interested in the IT business.

People with experience in sales, in IT, or juniors are welcome.

Candidates have to speak English.

Dedication to customers is the rule. Your daily contacts, permanent follow-up on quotations and 100% availability will make the difference, willingness and happiness will do the rest.

Positions based in Riyadh, Saudi Arabia.

Oracle Product Manager

The candidate must hold a degree in Commerce from a valuable University.

A sound understanding of the IT world, its moves its requirements and future trends would help the ideal candidate to step quickly in the driver seat.

Daily contacts with both customers and vendors, accuracy in reporting and development of marketing activities around his brands are required.

A good command of English is a must.

The position is based in Saudi Arabia (Riyadh) with regular visits paid to customers/users Kingdom wide.

Tech DataTech Data is a leading global provider of IT products, logistics management and other value-added services. A Fortune 100 Company, with over 8,000 employees in more than 30 subsidiaries across the world.

To support our continued growth and expansion in our Middle East operation we are looking for professional, self-confident and dynamic team players with excellent communications skills, for the following roles:

Credit Controller-UAERef: CC/1You will hold an accounting qualification and have at least 2 years of experience in the credit functions of FMCG/distribution businesses. At Tech data you will be involved in complete credit cycle of our clients. Detailed and methodical, Arabic language is an advantage as is the ability to work under pressure.

Purchasing ControllerRef: OPS/1You will direct and control purchasing operations to achieve the company’s annual operating plan through the provision of products to Sales & Marketing teams at optimum prices. Stock management and inbound logistics form an essential part of the job. With relevant qualifications your strengths for this role will be in organisation, analytical and negotiation skills. Good working knowledge in logistics, freight rates and custom laws.